Remember how earlier I said in an ascending trend the line goes at the bottom and in a descending trend at the top? Well channels scrap that theory and place a line on either side. Its effectiveness is debatable.

How to use them

The theory is that you place two lines on either side for the same trend. The lines need to be the same angle and you enter when the price hits the top line, exit when it reaches the bottom and vice versa.

How To Draw Them

Take a look:

It is pretty straight forward. You draw the primary trend line then you draw another one at the same angle on the other side. For example, in a downtrend you put a line at the bottom then place one at the top.